Common use of Covenants Concerning Collateral Clause in Contracts

Covenants Concerning Collateral. b. The Account is due and payable not more than sixty (60) days from the date of the invoice evidencing the Account and is not more than ninety (90) days past the date of the invoice evidencing the Account. c. Performance of all services giving rise to the Account has been completed and all goods giving rise to the Account have been delivered. d. The Account Debtor is located or authorized to do business within the United States or Canada (excluding the province of Newfoundland, the Northwest Territories, and the Territory of Nunavut) and maintains an office and transacts business in the United States or Canada (excluding the province of Newfoundland, the Northwest Territories, and the Territory of Nunavut), or payment of the Account (i) has been assured by a letter of credit in a form and upon terms acceptable to Lender or (ii) is covered under a policy of credit insurance acceptable to Lender which has been assigned to Lender or names Lender as an additional insured and lender loss payee in a form and manner acceptable to Lender. e. No proceeding has been commenced or petition filed under any bankruptcy or insolvency law by or against the Account Debtor; no receiver, trustee or custodian has been appointed for any part of the property of the Account Debtor; and no property of the Account Debtor has been assigned for the benefit of creditors. f. Neither the Account, nor any invoice, credit application, ▇▇▇▇, billing memorandum, correspondence, or any other document relating to an Account, contracts for or charges any interest or any other charge in excess of the maximum non-usurious rate allowed pursuant to applicable law. g. If twenty-five percent (25%) or more of the Accounts owing to Borrower by any particular Account Debtor do not qualify as Eligible Accounts, all Accounts owing by such Account Debtor shall not be Eligible Accounts. h. The Account is not owing by an Account Debtor for whom the terms of sale by Borrower are cash on delivery (“COD”) or considered a cash sale. i. Borrower does not owe an account payable to the Account Debtor which could be set off against the Account. j. If the total of all outstanding Accounts owing by any single Account Debtor equals seventy percent (70%) or more of the total outstanding Accounts owing to Borrower, the amount of Accounts owing by that Account Debtor in excess of this limit shall not be Eligible Accounts. k. If the Account is subject to any type of retainage, only the non-retainage portion of the Account shall be an Eligible Account. l. The Account is not owing with respect to any job which is bonded. m. The Account does not arise from goods placed on consignment, guaranteed sale, or other terms by reason of which the payment by the Account Debtor may be conditional. n. The Account is not owing by an employee, officer, or director of Borrower or by a parent, subsidiary, sister company, or other company or entity related to or an affiliate of Borrower. o. For all Accounts arising under any contract, subcontract, purchase order, or any other agreement with or related to the United States Government, or any agency, branch, division, or subdivision thereof, the Account Debtor has acknowledged and consented to Borrower’s assignment of Accounts to Lender and has agreed, in a form acceptable to Lender, to remit payments directly to Lender. p. The Account will not be paid by credit card or other form of electronic payment other than wire or ACH transfer sent directly to a deposit account specified by Lender. q. The Account has not been deemed by Lender to be unacceptable and is not owing by an Account Debtor deemed by Lender to be unacceptable.

Covenants Concerning Collateral. b. The Account is due and payable not more than sixty (60) days from the date of the invoice evidencing past the Account and is not more than ninety (90) days past the date of the invoice evidencing the Account.Due Date. ALLIED HEALTHCARE PRODUCTS, INC. 1 c. Performance of all services giving rise to the Account has been completed and all goods giving rise to the Account have been delivered. d. The Account Debtor is located or authorized to do business within the United States or Canada (excluding the province of Newfoundland, the Northwest Territories, and the Territory of Nunavut) and maintains an office and transacts business in the United States or Canada (excluding the province of Newfoundland, the Northwest Territories, and the Territory of Nunavut), or payment of the Account (i) has been assured by a letter of credit in a form and upon terms acceptable to Lender or (ii) is covered under a policy of credit insurance acceptable to Lender which has been assigned to Lender or names Lender as an additional insured and lender loss payee in a form and manner acceptable to Lender. e. No proceeding has been commenced or petition filed under any bankruptcy or insolvency law by or against the Account Debtor; no receiver, trustee or custodian has been appointed for any part of the property of the Account Debtor; and no property of the Account Debtor has been assigned for the benefit of creditors. f. Neither the Account, nor any invoice, credit application, ▇b▇▇▇, billing memorandum, correspondence, or any other document relating to an Account, contracts for or charges any interest or any other charge in excess of the maximum non-usurious rate allowed pursuant to applicable law. g. If twenty-five percent (25%) or more of the Accounts owing to Borrower by any particular Account Debtor do not qualify as Eligible Accounts, all outstanding Accounts owing by such an Account Debtor are past the Account Due Date, none of the Accounts owing by that Account Debtor shall not be Eligible Accounts. h. The Account is not owing by an Account Debtor for whom the terms of sale by Borrower are cash on delivery (“COD”) or considered a cash sale. i. Borrower does not owe an account payable to the Account Debtor which could be set off against the Account. j. If the total of all outstanding Accounts owing by any single Account Debtor equals seventy percent (70%) or more of the total outstanding Accounts owing to Borrower, the amount of Accounts owing by that Account Debtor in excess of this limit shall not be Eligible Accounts. k. If the Account is subject to any type of retainage, only the non-retainage portion of the Account shall be an Eligible Account. l. The Account is not owing with respect to any job which is bonded. m. The Account does not arise from goods placed on consignment, guaranteed sale, or other terms by reason of which the payment by the Account Debtor may be conditional. n. The Account is not owing by an employee, officer, or director of Borrower or by a parent, subsidiary, sister company, or other company or entity related to or an affiliate of Borrower. o. For all Accounts arising under any contract, subcontract, purchase order, or any other agreement with or related to the United States Government, or any agency, branch, division, or subdivision thereof, the Account Debtor has acknowledged and consented to Borrower’s assignment of Accounts to Lender and has agreed, in a form acceptable to Lender, to remit payments directly to Lender. p. The Account will not be paid by credit card or other form of electronic payment other than wire or ACH transfer sent directly to a deposit account specified by Lender. q. The Account Debtor is a duly organized and registered business entity and not an individual consumer. r. The Account has not been deemed by Lender to be unacceptable and is not owing by an Account Debtor deemed by Lender to be unacceptable.

Covenants Concerning Collateral. b. The Account is due and payable not more than sixty (60) days from the date of the invoice evidencing the Account and is not more than ninety (90) days past the date of the invoice evidencing the Account. c. Performance of all services giving rise to the Account has been completed and all goods giving rise to the Account have been delivered. d. The Account Debtor is located or authorized to do business within the United States or Canada (excluding the province of Newfoundland, the Northwest Territories, and the Territory of Nunavut) and maintains an office and transacts business in the United States or Canada (excluding the province of Newfoundland, the Northwest Territories, and the Territory of Nunavut), or payment of the Account (i) has been assured by a letter of credit in a form and upon terms acceptable to Lender or (ii) is covered under a policy of credit insurance acceptable to Lender which has been assigned to Lender or names Lender as an additional insured and lender loss payee in a form and manner acceptable to Lender. e. No proceeding has been commenced or petition filed under any bankruptcy or insolvency law by or against the Account Debtor; no receiver, trustee or custodian has been appointed for any part of the property of the Account Debtor; and no property of the Account Debtor has been assigned for the benefit of creditors. f. Neither the Account, nor any invoice, credit application, ▇b▇▇▇, billing memorandum, correspondence, or any other document relating to an Account, contracts for or charges any interest or any other charge in excess of the maximum non-usurious rate allowed pursuant to applicable law. g. If twenty-five percent (25%) or more of the Accounts owing to Borrower by any particular Account Debtor do not qualify as Eligible Accounts, all Accounts owing by such Account Debtor shall not be Eligible Accounts. h. The Account is not owing by an Account Debtor for whom the terms of sale by Borrower are cash on delivery (“COD”) or considered a cash sale. i. Borrower does not owe an account payable to the Account Debtor which could be set off against the Account. j. If the total of all outstanding Accounts owing by any single Account Debtor equals seventy percent (70%) or more of the total outstanding Accounts owing to Borrower, the amount of Accounts owing by that Account Debtor in excess of this limit shall not be Eligible Accounts. k. If the Account is subject to any type of retainage, only the non-retainage portion of the Account shall be an Eligible Account. l. The Account is not owing with respect to any job which is bonded. m. The Account does not arise from goods placed on consignment, guaranteed sale, or other terms by reason of which the payment by the Account Debtor may be conditional. n. The Account is not owing by an employee, officer, or director of Borrower or by a parent, subsidiary, sister company, or other company or entity related to or an affiliate of Borrower. o. For all Accounts arising under any contract, subcontract, purchase order, or any other agreement with or related to the United States Government, or any agency, branch, division, or subdivision thereof, the Account Debtor has acknowledged and consented to Borrower’s assignment of Accounts to Lender and has agreed, in a form acceptable to Lender, to remit payments directly to Lender. p. The Account will not be paid by credit card or other form of electronic payment other than wire or ACH transfer sent directly to a deposit account specified by Lender. q. The Account has not been deemed by Lender to be unacceptable and is not owing by an Account Debtor deemed by Lender to be unacceptable.